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WAEC Commerce 2017 Question 15

Question 15

Business Calculations

Use the following information: Adama's opening stock is D5,000. He purchased goods worth D30,000. His closing stock was D7,000 and sales D55,000.
What is the rate of stock turnover?

  1. A.11 times
  2. B.6 times
  3. C.4.7 times
  4. D.4 times
Show the answer and explanation

Answer: C (4.7 times)

Explanation

Rate of turnover = cost of goods sold ÷ average stock = 28,000 ÷ 6,000 ≈ 4.7 times.